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Starbucks: Leadership


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Looking at Starbucks, its CEO Howard Schultz, and their recognitions in leadership.

Published in: Business
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Starbucks: Leadership

  2. 2. STARBUCKS • Established 1971 • Started with one store in Seattle • Today has more than 22,000 stores worldwide • Starbucks and CEO Howard Schultz are getting a lot of attention in leadership, culture, and ethics
  3. 3. STARBUCKS & LEADERSHIP • Starbucks awarded one of “Worlds Most Ethical Companies,” 8th year in a row • Ethisphere evaluates companies in Reputation, Leadership & Innovation, Ethics & Compliance Program, Governance, Corporate Citizenship and Responsibility, Culture of Ethics
  4. 4. STARBUCKS & LEADERSHIP • Schultz #29 on Fortunes “Worlds 50 Greatest Leaders” • Schultz #8 on Glassdoor’s “Highest Rated CEO’s” • Received 93% approval rate • Earned top 10 spot on an employee rated survey of executives
  5. 5. HOWARD SCHULTZ: 7 LEADERSHIP PRINCIPLES • Need the right people on your team • Returned as CEO in 2008 • Had 10,000 managers go on 4 day conference in New Orleans, was chief communicator • His goal was to challenge & inspire them • They came back more energized than ever 1.) Hire the right people
  6. 6. HOWARD SCHULTZ: 7 LEADERSHIP PRINCIPLES • 22,000 stores globally that offer different coffee blends and foods • No matter what branch you go to, will get the same quality product • Has goal of giving best customer care service, including consistency of products 2.) Consistent in delivering products & services
  7. 7. HOWARD SCHULTZ: 7 LEADERSHIP PRINCIPLES • Gives employees more than just perks • Gives comprehensive health insurance • Option to own stocks, even part- time • Tuition benefits • Shifting Schedules • Listens to his employees 3.) Take good care of employees
  8. 8. HOWARD SCHULTZ: 7 LEADERSHIP PRINCIPLES • Believes every place has its own preference and practice, and designs every store accordingly • Includes appearance and design • Open to suppliers in diversified communities such as minority races, People with Disabilities, Veterans, LGBT, etc. • Contributes to economic development 4.) Respect culture & encourage diversity
  9. 9. HOWARD SCHULTZ: 7 LEADERSHIP PRINCIPLES • Passion is building a company focused on treating people with respect and dignity • This is the vision of Starbucks • Mission aims to give customers a place where to meet up with friends, hold meetings, do work, and relax • Want it to be more than just a place to get coffee 5.) Has a mission and vision
  10. 10. HOWARD SCHULTZ: 7 LEADERSHIP PRINCIPLES • Company has partnered with organizations to reach out to its markets • Believes in finding right team to partner with • It will be easier to build brand awareness and achieve goals • Barnes & Noble, have many stores inside. Customers can enjoy their book over coffee • Apple, can download Starbucks’ playlist on iTunes 6.) Importance of Partnerships
  11. 11. HOWARD SCHULTZ: 7 LEADERSHIP PRINCIPLES • Customers and employees are pillars of a business • Baristas give personal touch to customers • Employees fix mistakes and replace orders • Employees have ideas to offer and it pays to listen to them • Frappuccino was invented by one of his employees 7.) Knowing employees & customers
  12. 12. TRANSFORMATIONAL LEADERSHIP • Transformational leaders create a relationship between leaders and followers the helps followers reach their full potential and can transform both. • Schultz principles of leadership and his way of running Starbucks presents him as a transformational leader…
  13. 13. TRANSFORMATIONAL LEADERSHIP • Intellectual Stimulation: Challenge status quo, encourage followers to be creative, explore new ways, and new opportunities. • Schultz listens to his employees. Believes they have ideas worth being heard. • Challenges management, asks for creativity and innovation, like when he sent them to New Orleans. • Can share ideas and views
  14. 14. TRANSFORMATIONAL LEADERSHIP • Individualized Consideration: Offer support & encouragement to followers. Supportive relationships by keeping lines of communication open. • Schultz principle #3 is taking good care of his employees. He offers them many benefits. • Instead of punishing or ignoring a worker for interviewing with New York Times about work schedules, her concerns were heard and resolved.
  15. 15. TRANSFORMATIONAL LEADERSHIP • Inspirational Motivation: Clear vision, shown to followers. Able to help them experience same passion & motivation. • Schultz inspirational motivation is clear in his principle and the way the world is following and awarding his leadership • Spreads Starbucks’ mission, vision, & values
  16. 16. TRANSFORMATIONAL LEADERSHIP • Vision is to build a company focused on treating people with dignity & respect • Mission Statement: To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. • Mission is to create a place for people to do more than just get coffee
  17. 17. TRANSFORMATIONAL LEADERSHIP “With our partners, our coffee, and our customers at our core, we live these values:” • Creating a culture of warmth and belonging, where everyone is welcome. • Acting with courage, challenging the status quo and finding new ways to grow our company and each other. • Being present, connecting with transparency, dignity and respect. • Delivering our very best in all we do, holding ourselves accountable for results “We are performance driven, through the lens of humanity.”
  18. 18. TRANSFORMATIONAL LEADERSHIP • Idealized Influence: Serve as role model. Followers trust and respect them. • Schultz has received attention from many to commend his leadership. • 93% approval rate is amazing. • On list of Worlds 50 Greatest Leaders • Top Rated CEO • His employees are happy to be lead by him.
  19. 19. WORKS CITED Chris, J. (2015, August 30). 7 Howard Schultz Leadership Style Principles - Joseph Chris Partners. Retrieved March 31, 2016, from schultz-leadership-style-principles Starbucks and Howard Schultz Recognized for Leadership. (2014, March 21). Retrieved March 31, 2016, from howard-schultz-recognized-for-leadership
  20. 20. WORK CITED Starbucks Corporation. (2016). Mission Statement. Retrieved March 31, 2016, from information/mission-statement The Leadership Summit. (2014). Retrieved March 31, 2016, from ward-schultz/